Federal budget finally serious about housing supply
The budget's housing supply package finally begins dismantling the structural barriers that have locked younger generations out of the market.
The budget hero: $2 billion Commonwealth upzoning incentive fund
The Local Infrastructure Fund represents the Commonwealth’s first serious engagement with residential land use in almost 30 years.
The Commonwealth has an opportunity to pull the states toward creating better housing outcomes, by unbanning housing across our towns and cities alike.
The Local Infrastructure Fund should be tied to a National Townhouse Code
We recommend the Commonwealth implement a National Townhouse Code, as introduced at the 2025 election by the YIMBY movement and later backed by the Grattan Institute.
The Code would require states to set a minimum allowable density of at least three storeys, enabling townhouses and low-rise apartments to be built nation-wide, by-right.
This one simple policy would solve a large number of our nation’s planning problems, especially in smaller capitals like Adelaide and Perth, and regional centres, where home prices have recently skyrocketed.
CGT and Negative Gearing reforms positioned to be supply-positive
The YIMBY movement welcomes changes to CGT and Negative Gearing. As we have previously noted in submissions to the Commonwealth, we do not expect these changes to have meaningful impacts on home prices and rents.
But by maintaining carveouts for new builds, the government tilts incentives slightly toward new supply—directing capital toward increasing the number of homes available for Australians to live in.
With the hardest parts done, the Commonwealth should implement commonsense fixes
This is a once-in-a-generation opportunity to liberalise planning restrictions and make gentle density townhouses legal to build everywhere in Australia.
In addition to the changes already made and recommended above, the Commonwealth Government should implement other recommendations from our Brick Book. That means:
- Introduce a national occupational licensing regime to empower tradespeople to build where they are needed most
- Boost Commonwealth Rent Assistance (CRA) to make sure payments stay at levels that keep up with city rents
- Exempt public housing builds from GST and other federal taxes
- Make public housing tenants eligible for CRA
Quotes attributable to Jonathan O'Brien, Spokesperson, Abundant Housing Network; Lead Organiser, YIMBY Melbourne
“This is the first serious Commonwealth budget for housing supply.”
“The Federal Government is following the evidence. They’re putting a stake in the ground, and putting up a real incentive for states and councils to stop blocking housing.”
“This policy will only be as good as the change it incentivises. The Commonwealth has to make sure they actually get bang for their buck, and avoid letting states and councils bamboozle them by pretending to do something meaningful while just rearranging the deck chairs.“
Quotes attributable to Travis Jordan, Lead Organiser, Greater Brisbane
“With construction costs in Queensland at record highs, the biggest bang-for-buck reforms are ones that unlock more townhouses in more places.”
“We need to wind back twenty years of crackdowns and bans on townhouses across Brisbane—and legalise three storey townhouses on any sized lot right now.”
Quotes attributable to Justin Simon, Chair, Sydney YIMBY
“This budget marks the end of 20 years of trying to fix the housing crisis by subsidising demand—you don’t put out a fire by pouring petrol on it.”
“Putting up money for infrastructure is great, telling states they don’t get a cent unless they upzone for more density is even better. This is a one-two punch to give us better, more affordable cities.”
Quotes attributable to Andrew Donnellan, Secretary, Greater Canberra
“We're very happy to see the Commonwealth putting its money where its mouth is, with a significant investment in housing enabling infrastructure that incentivises states and territories to commit to the long-term reforms we need to build more homes.”
“We must get our fair share of this funding, and we look forward to seeing the Commonwealth collaborate with the ACT Government to ensure that Canberra's Missing Middle Housing Reforms work effectively.”
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